live

WRAP: Jooste washes hands of Steinhoff collapse

accreditation
Steinhoff CEO Markus Jooste during the company’s results presentation on Septemeber 09, 2014 in Johannesburg, South Africa. (Gallo Images)
Steinhoff CEO Markus Jooste during the company’s results presentation on Septemeber 09, 2014 in Johannesburg, South Africa. (Gallo Images)
Last Updated
Live News Feed
Go to start

05 Sep 2018

Analysing former Steinhoff CEO Markus Jooste's first public utterances since his former company's near-collapse nine months ago to the day.

MUST READS:

‘It wasn’t me’ – decoding former Steinhoff CEO Markus Jooste

ANALYSIS: Steinhoff's Markus Jooste's three-tiered defence

05 Sep 2018

Analysing former Steinhoff CEO Markus Jooste's first public utterances since his former company's near-collapse nine months ago to the day.

MUST READS:

‘It wasn’t me’ – decoding former Steinhoff CEO Markus Jooste

ANALYSIS: Steinhoff's Markus Jooste's three-tiered defence

05 Sep 2018

Jooste blames businessman Seifert for Steinhoff accounting probe

Jooste detailed the strategic partnership with Dr Andreas Seifert, which started when the MoU was signed in 2007.

Seifert owned a large mass discount retail chain which operated in Germany and Austria and in also smaller Eastern European companies. At the time Steinhoff had an investment in Poco, in Germany. The two businesses merged through the 50:50 joint venture, he explained.

In 2011, they bought Conforama but Seifert did not have his 50% for the acquisition, which Jooste viewed as a cashflow problem and not an "integrity issue".

Then Seifert pushed for the Kika/Leiner acquisition, Kika/Leiner was Seifert's biggest competitor in Austria. This transaction raised red flags, when again it appeared Seifert would not be able to bring his share, Jooste explained.

This led to a fallout in November 2014. The relationship with Seifert was terminated in January 2015, on legal advice.

After that the litigation against Steinhoff commenced, as did the allegations of accounting irregularities, Jooste pointed out.

One case is still open in Vienna, over a dispute about a shortfall related to the  Conforama acquisition, Jooste said.  Jooste told MPs that in a hearing at a court in Vienna it appeared, in retrospect that Seifert had no intentions on paying for any acquisition that was proposed. "That was part of the fight and the litigation that was going on at the time," he said. 

Jooste added that the "interim remarks" by the judge in Vienna confirmed the "feeling" Steinhoff had about the matter.



Steinhoff to sell remaining interests in POCO for R4.7bn

05 Sep 2018

WATCH: Jooste's testimony before Parliament

05 Sep 2018

Steinhoff biggest corporate failure of SA - Jooste

Jooste said that Steinhoff is the biggest corporate failure in SA, and not the biggest corporate scandal, as suggested by Scof chair Yunus Carrim.

Carrim said that Jooste painted himself as the "Mother Theresa" of Steinhoff.

“The word scandal is for writers of sensation," said Jooste.

He added that it is saddening that people lost money, but Steinhoff managed to mitigate job losses.

He explained that the fall in the share price was due to the delay in the release of the financial statements, which created uncertainty to which markets reacted. 

He also explained that Steinhoff's failure is not due to its multi-lateral structure, but rather his decision to enter into a Joint Venture with Andreas Seifert in 2007.


05 Sep 2018

Steinhoff had a buying group - Jooste

Former Steinhoff CEO Markus Jooste confirmed that Steinhoff had several buying groups around the world. Supporting former CFO Ben La Grange's testimony last week.

Jooste said that the buying groups were audited and were also part of an investigation by a German legal firms. 

#Steinhoff: Seven things you need to know from La Grange's testimony

05 Sep 2018

Steinhoff's audit processes were professional

"I am satisfied in my personal opinion that the audit processes were professional," Jooste told MPs. The former Steinhoff CEO steered clear of criticising the audt processes of the retailer.

He would not be drawn in to blame anyone for Steinhoff's downfall. 

"I did not come here to blame anybody I personally believe all the colleagues I worked with worked in the best interests of the company. They gave their lives, it was part of the daily DNA of the business."

Jooste said that everyone was dedicated to grow the business, make it successful and create employment and to "enjoy it".

"I do not blame anyone for what happened at Steinhoff."

Jooste would not comment on events which took place after December 4, as he was on his way out from the company. He said that he could not comment on the PwC investigation either until the report is released at the end of the year.  This investigation will also inform the recourse that investors will take, he explained.

He added that investors are well within their rights to take on civil claims. 

05 Sep 2018

Steinhoff cut off communication with Jooste

Jooste said that Steinhoff cut off all communication with him since his resignation, emphasising his earlier statement that he has not been in contact with the firm since December.

"Steinhoff ceased at that stage all communication with me... I was informed and understood no one at Steinhoff had to have further communication or discussion with me."

Jooste confirmed that he was interviewed by the Financial Services Board and that he and his legal team have been available to assist the Hawks in their investigation.

He added that he had no more documents to submit, the day he left Steinhoff he lost his telephone contacts, emails and other records. 


05 Sep 2018

Jooste family trust held R3bn in Steinhoff shares on day of fallout

On the day of the Steinhoff share price fallout, Jooste's family trust which has an investment company Mayfair, lost R3bn. The company held 68 million Steinhoff shares.

Jooste said it is public knowledge that Mayfair made a settlement with banks to avoid a default. The Steinhoff shares were to be used as collateral for the loans.

The shares were sold. "The investment company has no more Steinhoff shares left," he told MPs.

Parties to meet as Markus Jooste's Mayfair aims to 'offload' Lodestone stake

05 Sep 2018

FIRST PICS: Steinhoff's Markus Jooste briefs Parliament

Markus Jooste and his lawyer Francois van Zyl SC, wait for proceedings to start on September 5 in Parliament. (Supplied)

<p><strong>FIRST PICS: Steinhoff's Markus Jooste briefs Parliament</strong></p><p>Markus Jooste and his lawyer Francois van Zyl SC, wait for proceedings to start on September 5 in Parliament. (Supplied)<strong></strong></p>
FULL GALLERY

05 Sep 2018

Steinhoff shares are currently trading up 3.82% at R2.72, a far cry from it's 52-week high of R66.25.
Steinhoff shares are currently trading up 3.82% at R2.72, a far cry from it's 52-week high of R66.25.

05 Sep 2018

Maynier drops F-bomb

DA MP David Maynier, citing a quote from an associate of Jooste who labeled the former CEO as an [Expletive] psychopath.

Scof chair Yunus Carrim reins maynier him and asks him to "cut the melodrama" and "ask the question".

05 Sep 2018

Jooste says a new probe in allegations would have 'devastating effect' on Steinhoff  

Former Steinhoff CEO Markus Jooste said that Deloitte's proposal for further investigations into accounting irregularities would have a devastating effect on investor confidence, credit lines and the Steinhoff share price.  

Jooste was against the investigation as the firm had already commissioned investigations, which took two years and found that they had not found evidence to conclude that the accounting of referenced transactions was not in compliance with the IFRS Standards. 

"I was not aware of any accounting irregularity in the books of Steinhoff," Jooste said- referring to Deloitte's report. Accounting irregularities suggests fraud, he said.

A new investigation proposed by Deloitte would delay the release of financial results on December 6. As a result to Jooste proposed an alternative auditor be recruited and unaudited financial results be released instead.   

But the board did not side with this decision and the fallout of the Steinhoff share price resulted, he explained.

Jooste said the delayed release of financial results, remaining queries about accounting irregularities and a suggestion of a new probe despite previous two-year long independent investigations having taken place impacted confidence and led to the drop in share price.


05 Sep 2018

Steinhoff's downfall began with 2007 joint-venture

Former Steinhoff CEO Markus Jooste says a partnership dating back to 2007 with an Austrian businessman Andreas Seifert, who owned a European retailer.

In retrospect this partnership was not the best decision for the business. The termination of the venture in 2015 resulted in litigation where allegations of tax planning misconduct were made against Steinhoff with regard to it's European subsidiary.

But investigations by German prosecutors and two firms commissioned by Steinhoff did not find evidence to support the allegations by Seifert, when they  concluded investigations two years later. 

Germany raids Steinhoff offices ahead of listing

05 Sep 2018

Jooste unpacks Steinhoff's multi-layered reporting

In his testimony to Parliament former Steinhoff CEO Markus Jooste unpacked the complexity of the firm's reporting. His testimony echoes that of former CFO Ben La Grange - multiple auditors were responsible for the reports of the multinational business units.

05 Sep 2018

Follow the live stream

05 Sep 2018

Steinhoff hearing commences

Scof chair Yunus Carrim says the legal framework has been covered- last week Parliament legal advisor Frank Jenkins explained that witnesses are protected from self-incrimination.

In terms of section 16 of the Powers and Privileges Act: Jooste must answer factually in connection with matters relating to the inquiry. But the evidence given under the oath may not be used against him in any court outside Parliament. 

Scopa chair Themba Godi asks Jooste to take his time and relax- because what he is about to say is of national significance. He is talking to Parliament, the nation as the fallout at Steinhoff affected pension fund holders. The intent of Parliament is to get clarity. 

Carrim reiterates that Parliament is not a court of law but that Parliament is looking to learn from this experience because of it's national interest, tighten regulations and laws so that it does not happen "as often as it happens".

"We want to see what the gaps are in legislation and what we can do to empower regulators. We are not here to secure guilt."

05 Sep 2018

TIMELINE: Markus Jooste and Steinhoff's R200bn fall in market cap

Follow the events following Jooste's resignation and ultimately his appearance before Parliament.

READ MORE HERE

05 Sep 2018

Christo Wiese: All I want to know from Steinhoff's Markus Jooste is, ‘Why’?

Almost nine months to the day since Steinhoff began its precipitous fall on December 6 last year, its 57-year-old former CEO Markus Jooste will come out of seclusion to face a grilling at Parliament on Wednesday.  

The man who was once South Africa’s richest, but whosefortune was severely dented by the Steinhoff saga, confirmed he would be watching Jooste on television on Wednesday. 

Asked what he would ask the man who was once like a son to him - but whom he has not seen nor heard from since December 6 - former Steinhoff chairman Christo Wiese says MPs will know exactly what to ask, but his own question would be a simple, "Why?"  

More here

05 Sep 2018

Markus Jooste's lawyers have arrived at Parliament

Markus Jooste's legal team is at Parliament: They are Francois van Zyl SC, Jeremy Muller SC and Salome van Zyl.

<p><strong>Markus Jooste's lawyers have arrived at Parliament</strong></p><p>Markus Jooste's legal team is at Parliament: They are Francois van Zyl SC, Jeremy Muller SC and Salome van Zyl.</p>
We live in a world where facts and fiction get blurred
In times of uncertainty you need journalism you can trust. For only R75 per month, you have access to a world of in-depth analyses, investigative journalism, top opinions and a range of features. Journalism strengthens democracy. Invest in the future today.
Subscribe to News24
Rand - Dollar
16.08
-0.9%
Rand - Pound
21.28
-0.4%
Rand - Euro
18.18
-1.0%
Rand - Aus dollar
11.26
+0.4%
Rand - Yen
0.14
-1.3%
Gold
1,784.01
+0.9%
Silver
22.52
+0.6%
Palladium
1,798.46
+0.8%
Platinum
934.50
-0.6%
Brent Crude
69.67
+1.2%
Top 40
64,307
-0.4%
All Share
70,808
-0.3%
Resource 10
66,503
-1.6%
Industrial 25
93,791
+0.1%
Financial 15
13,982
+0.7%
All JSE data delayed by at least 15 minutes Iress logo
Company Snapshot